The Federal Government will look to ban debit card surcharges from 2026, as cash disappears from the economy.
Prime Minister Anthony Albanese said, in the meantime, the Australian Competition and Consumer Commission (ACCC) would be provided with an extra $2.1 million in funding to crack down on “unfair and excessive” card surcharges.
Prime Minister Albanese said the declining use of cash and the rise of electronic payments meant more Australians were getting slugged by surcharges, even when they used their own money.
He said the Reserve Bank of Australia (RBA) was responsible for regulating the payments system and was undertaking a review of merchant card payment costs and surcharging.
“We are prepared to ban debit card surcharging from January 1, 2026, subject to the consultation undertaken by the RBA, and sufficient steps and safeguards to ensure both small businesses and consumers can benefit from lower costs.”
Prime Minister Albanese said Australia’s payments and surcharging system was complex.
“The RBA’s Review is an important step to reduce the costs small businesses face when processing payments,” he said.
“We want to ease costs for consumers without added costs for small businesses, or unintended consequences for the broader economy.”
